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Tactical coordination in a multi-location and multi-stage operations structure: A model and a pharmaceutical company case


  • Meijboom, Bert
  • Obel, Børge


In this paper, we look at the internal supply chain of an internationally operating firm characterized by a multi-location and multi-stage operations structure. We address problems at three levels, namely the strategic, tactical, and operational levels. Our approach goes beyond the operational literature, and focuses primarily on the tactical level. We specify a model and a case that capture strategic and tactical issues and relate the tactical issues to organizational issues. We simulate coordination in different organizational forms pertaining to the 'tactical control' of the firm. Our analysis suggests that a functionally organized multi-location and multi-stage operations structure using traditional planning will not work. The choice is between a strongly IT-based, centralized organization or a more decentralized organization using transfer prices as the coordination device.

Suggested Citation

  • Meijboom, Bert & Obel, Børge, 2007. "Tactical coordination in a multi-location and multi-stage operations structure: A model and a pharmaceutical company case," Omega, Elsevier, vol. 35(3), pages 258-273, June.
  • Handle: RePEc:eee:jomega:v:35:y:2007:i:3:p:258-273

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    References listed on IDEAS

    1. Goetschalckx, Marc & Vidal, Carlos J. & Dogan, Koray, 2002. "Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms," European Journal of Operational Research, Elsevier, vol. 143(1), pages 1-18, November.
    2. Vidal, Carlos J. & Goetschalckx, Marc, 1997. "Strategic production-distribution models: A critical review with emphasis on global supply chain models," European Journal of Operational Research, Elsevier, vol. 98(1), pages 1-18, April.
    3. Jayaraman, Vaidyanathan & Pirkul, Hasan, 2001. "Planning and coordination of production and distribution facilities for multiple commodities," European Journal of Operational Research, Elsevier, vol. 133(2), pages 394-408, January.
    4. A. M. Geoffrion & G. W. Graves, 1974. "Multicommodity Distribution System Design by Benders Decomposition," Management Science, INFORMS, vol. 20(5), pages 822-844, January.
    5. Gomez, T. & Gonzalez, M. & Luque, M. & Miguel, F. & Ruiz, F., 2001. "Multiple objectives decomposition-coordination methods for hierarchical organizations," European Journal of Operational Research, Elsevier, vol. 133(2), pages 323-341, January.
    6. Lootsma, F. A., 1994. "Alternative optimization strategies for large-scale production-allocation problems," European Journal of Operational Research, Elsevier, vol. 75(1), pages 13-40, May.
    7. Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
    8. Bruce Kogut & Nalin Kulatilaka, 1994. "Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network," Management Science, INFORMS, vol. 40(1), pages 123-139, January.
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    Cited by:

    1. Mula, Josefa & Peidro, David & Díaz-Madroñero, Manuel & Vicens, Eduardo, 2010. "Mathematical programming models for supply chain production and transport planning," European Journal of Operational Research, Elsevier, vol. 204(3), pages 377-390, August.
    2. repec:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-013-1513-2 is not listed on IDEAS
    3. Kopanos, Georgios M. & Puigjaner, Luis & Georgiadis, Michael C., 2012. "Simultaneous production and logistics operations planning in semicontinuous food industries," Omega, Elsevier, vol. 40(5), pages 634-650.
    4. Saedi, Samira & Kundakcioglu, O. Erhun & Henry, Andrea C., 2016. "Mitigating the impact of drug shortages for a healthcare facility: An inventory management approach," European Journal of Operational Research, Elsevier, vol. 251(1), pages 107-123.
    5. repec:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-014-1544-3 is not listed on IDEAS
    6. Assid, M. & Gharbi, A. & Dhouib, K., 2015. "Joint production and subcontracting planning of unreliable multi-facility multi-product production systems," Omega, Elsevier, vol. 50(C), pages 54-69.
    7. Tang, Shao-Long & Yan, Hong, 2010. "Pre-distribution vs. post-distribution for cross-docking with transshipments," Omega, Elsevier, vol. 38(3-4), pages 192-202, June.
    8. Gunasekaran, Angappa & Lai, Kee-hung & Edwin Cheng, T.C., 2008. "Responsive supply chain: A competitive strategy in a networked economy," Omega, Elsevier, vol. 36(4), pages 549-564, August.


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